Amazon Proof No More? Family Dollar Is Closing Hundreds of Stores

Dollar Tree Inc., the parent company of budget stores, Dollar Tree and Family Dollar announced that it would close 390 stores during 2019. People saw the company’s efforts to save their stores, but it was sadly unfruitful. Family Dollar and Dollar Tree used to be the most famous budget-friendly stores across the country. Selling groceries, accessories and home goods for as low as $1 and nothing over $10. They used to be rivals until Dollar Tree bought Family Dollar for only $8.5 billion. During that time, the latter had 13,000 stores scattered across the US and Canada with yearly revenue of $19 billion.

Obtaining Family Dollar might seem like a great addition to the company’s portfolio, but closing hundreds of its stores meant that they are facing a $2.3 billion loss. This dilemma is plaguing other companies in the retail industry. They are going out of business because of online counterparts , like Amazon. Dollar Tree was touted to be the antidote to online shopping, but they too are struggling now.

Why Is Dollar Tree Having A Hard Time

Dollar stores are known to compete quite well with big box brands because they pay less rent and sell more stuff. The concept was attractive enough for Walmart to build its small stores. Online magnate, Amazon, had its eye on the dollar store idea when it launched a new section on the site for products that are $10 and less. It included home goods, accessories, clothes, and electronics. Industry giants like Walmart, Amazon, and Target started their private labels.

Now, they sell discounted toilet papers, clothes, and furniture at a discounted price. If you think that’s a hard hit on Dollar Tree, get a load of this: %42 of their imports are from China, and with President Donald Trump increasing taxes, the company is facing a 10% damage on inventory.

With the closing of 400+ stores, the Dollar Store concept is still earning money. It even had a $22 billion annual revenue last year because they are still the best option for consumers relying on big discounts. Dollar stores thrive in low-income neighborhoods, with the eroding middle class, people are turning away from department stores and opting for these kinds of stores instead.

The CEO of Dollar Tree, Gary Philbin, aims to revamp and update its stores continuously, until he finds the right formula that will defeat his competition. They are planning to renovate 1,000+ stores and sell profit-friendly products like freezer food and alcohol. There’s still a lot of work cut out for them, and it doesn’t change the fact that it’s not Amazon proof anymore.

The Wisdom Segment

I
The American Revolution happened between the years 1765 and 1783. The aim of the conflict, pushed by the thirteen American colonies against Great Britain, was to gain independence through the creation of a sovereign nation. With the help of France, America eventually triumphed in this objective.

II
American colonists who supported the fight for independence were called "patriots." Conversely, those who sided with the British crown, whose soldiers were called redcoats, or devils, were referred to as loyalists. Many of those who did not take sides in the war were called fence sitters.

III
One of the leading causes of the American Revolution was summarized in the slogan, no taxation without representation, wherein American colonists believed it to be illegal for them to be affected by laws enacted in British parliament without their input.

IV
Being taxed without proper representation was deemed oppressive, and this prompted the start of many protests. In turn, this led to the Boston Massacre, euphemistically referred to by the British as "the Incident on King Street in 1770," where British soldiers shot and killed protesters while being harassed in Boston.

V
The Whig Party opposed constitutional monarchism in parliament. They also criticized the British government for their corrupt practices. Then a political faction, they also refused to support the use of military force against the colonists to resolve the problems which had given rise to the American Revolution.

VI
During the American Revolution, some African-American slaves were enticed to fight in favor of the British who, in turn, promised liberty to those who supported the loyalist forces. Since some slaves chose to fight alongside their masters, this meant there were African-Americans on both sides of the conflict.